The paper investigates the impacts of the reverse mortgage on retirement income for the aged people in Taiwan. We use the pricing model of reverse mortgage proposed by Szymanoski (1994) to calculate the Principal Limit Factor Ratio for the loan amount that can be borrowed from reverse mortgage. We then evaluate the possible increase of the retirement income for the aged people who utilize the reverse mortgage in Taiwan. The numerical results indicate that in average reverse mortgage can help the aged people in Taiwan to increase the retirement replacement ratios about 20% to 80%. Therefore, reverse mortgage can serve as an effective tool to cope with the financial problems for the retirement.